Many mineral-rich countries face challenges in ensuring that tax payments align with the contractual obligations of firms. These challenges include insufficient collection and sharing of information, lack of institutional coordination and cooperation, and inadequate skills to analyze the financial, legal, and economic information of companies in the mining sector. While developing countries are working to address access to information and capacities within their borders, they face significant constraints in accessing mining information from operations in countries with similar conditions. In several cases, operations for similar commodities or processes exist within given subregions and regions, and could be useful in potentially supporting informed assessment of periodic tax filings resulting from mining operations.

While there are many information sources and initiatives to share information, such as the OECD country-by-country reporting and commercial databases, these tools are not always adapted to the needs of mineral-rich developing countries in terms of relevant and applicable information. Commercial databases may not always be accessible to developing countries due to cost reasons, and when they are, the information contained may not always be readily relevant and may need adjustment to fit local contexts. This is compounded by often insufficient institutional capacities and resources.

These terms of reference are designed to create a concept proof database for mining tax information sharing between mineral-rich countries while preserving relevant confidential information. The approach includes two phases.

Phase One

The first phase will include the assessment of existing information-sharing initiatives, approaches, guidelines, templates, regulations, systems, and initiatives aimed at enabling countries and companies to share fiscal information in general, and mining sector information specifically. This phase will broadly assess and draw relevant lessons for applicability from initiatives such as the OECD’s country-by-country reporting, the Canadian Extractive Sector Transparency Measures Act, the Extractive Industries Transparency Initiative, the ECOWAS Supplementary Act on Mutual Administrative Assistance in Tax Matters, OECD’s Convention on mutual administrative assistance in tax matters, the West Africa Economic and Monetary Union’s (WAEMU) Directive on Modernization and Harmonization of Fiscal and Customs Information Sharing Systems, the International Convention on Mutual Administrative Assistance in Customs Matters, as well as the provisions for annual filings for taxes for mining companies in West African countries.

The assessment will identify project-based accounting and reporting in  four West African mineral-rich countries, the periodicity of income tax filings for mining companies, as feasible existing   IT reporting systems, agreements to set between countries for data transfers, and data-sharing protocols. Elements to be covered by the database include key production, revenues, and cost items necessary for assessing taxes for open-pit and underground mines. These may include production, prices, revenues, costs (power, diesel, gas, labor, consumables, overhead freight, treatment and refining costs, selling, general, and administrative expenses, relevant exploration costs, and others), by-products credit and penalties, royalties, and other relevant revenue and cost items for open and underground mines.

The assessment will identify and share an approach towards mining taxes payment information sharing between interested countries, identify potential obstacles for countries willing to share mining-related fiscal information, and share on  how these obstacles could be addressed based on global good practices.

Phase Two

Based on the assessment the second phase will include the development of a concept proof database for information sharing on mining payments between interested countries. As feasible It will also include testing information sharing through the database between two countries.

SELECTION OF CONSULTING FIRMS BY THE WORLD BANK GROUP

REQUEST FOR EXPRESSION OF INTEREST (EOI)

Electronic Submissions through WBGeProcure RFx Now

ASSIGNMENT OVERVIEW

Assignment Title: Assessing Mining Taxes Information Sharing Between Countries and Developing a Concept Proof Database

Assignment Countries:

- Not Country Related

ASSIGNMENT DESCRIPTION

Many mineral-rich developing countries face challenges in ensuring that tax payments align with the contractual obligations of firms. These challenges include insufficient collection and sharing of information, lack of institutional coordination and cooperation, and inadequate skills to analyze the financial, legal, and economic information of companies in the mining sector. While developing countries are working to address access to information and capacities within their borders, they face significant constraints in accessing mining information from operations in countries with similar conditions. In several cases, operations for similar commodities or processes exist within given subregions and regions, and could be useful in potentially supporting informed assessment of periodic tax filings resulting from mining operations.

While there are many information sources and initiatives for countries to share information, such as the OECD country-by-country reporting and commercial databases, these tools are not always adapted to the needs of mineral-rich developing countries in terms of relevant and applicable information. Commercial databases may not always be accessible to developing countries due to cost, and when they are, the information contained may not always be readily relevant and may need adjustments to fit local contexts. This is compounded by often insufficient institutional capacities and resources.

These terms of reference are designed to create a concept proof database for mining tax information sharing between interested mineral-rich developing countries while preserving relevant confidential information. The approach includes two phases.

Phase One

The first phase will include the assessment of existing information-sharing initiatives, approaches, guidelines, templates, regulations, systems, and initiatives aimed at enabling countries to sensibly share fiscal information in general, and mining sector information specifically. This phase will broadly assess and draw relevant lessons for applicability from initiatives such as the OECD’s country-by-country reporting, the Canadian Extractive Sector Transparency Measures Act, the Extractive Industries Transparency Initiative, the ECOWAS Supplementary Act on Mutual Administrative Assistance in Tax Matters, OECD’s Convention on mutual administrative assistance in tax matters, the West Africa Economic and Monetary Union’s(WAEMU) Directive on Modernization and Harmonization of Fiscal and Customs Information Sharing Systems, the International Convention on Mutual Administrative Assistance in Customs Matters, as well as the provisions for annual filings for taxes for mining companies in West African countries.

The assessment will identify project-based accounting and reporting in four West African mineral-rich countries, the periodicity of income tax filings for mining companies, as feasible existing IT reporting systems, agreements to set between countries for data transfers, and data-sharing protocols. 

The assessment will identify and share an approach towards mining taxes payment information sharing between interested countries, identify potential obstacles for countries willing to share mining-related fiscal information, and share on how these obstacles could be addressed based on global good practices.

Based on the assessments, propose detailed specifications for the development and testing of a comprehensive concept proof database for information sharing between countries specifically related to mining taxes. This will include the structure (workflow) and specifications for the database (database prototyping) 

Phase Two

Based on the assessment the second phase will include the development of a concept proof database for information sharing on mining payments between interested countries. Elements to be covered by the database include key production, revenues, and cost items necessary for assessing taxes for open-pit and underground mines. These may include production, prices, revenues, costs (power, diesel, gas, labor, consumables, overhead freight, treatment and refining costs, selling, general, and administrative expenses, relevant exploration costs, and others),by-products credit and penalties, royalties, and other relevant revenue and cost items for open and underground mines.

As feasible It will also include testing information sharing through the database between two countries.

FUNDING SOURCE

The World Bank Group intends to finance the assignment / services described below under the following:

• BB: Bank Budget
• TF0B9755: EGPS

ELIGIBILITY

Eligibility restrictions apply:

• [Please type list of restrictions]

SUBMISSION REQUIREMENTS

The World Bank Group invites eligible firms to indicate their interest in providing the services. Interested firms must provide information indicating that they are qualified to perform the services (brochures, description of similar assignments, experience in similar conditions, availability of appropriate skills among staff, etc. for firms; CV and cover letter for individuals). Please note that the total size of all attachments should be less than 5MB. Firms may associate to enhance their qualifications unless otherwise stated in the solicitation documents. Where a group of firms associate to submit an EOI, they must indicate which is the lead firm. If shortlisted, the firm identified in the EOI as the lead firm will be invited to the request for proposal (RFP) phase.

Expressions of Interest should be submitted, in English, electronically through WBGeProcure RFx Now

NOTES

Following this invitation for EOI, a shortlist of qualified firms will be formally invited to submit proposals. Shortlisting and selection will be subject to the availability of funding.

Only those firms which have been shortlisted will be invited to participate in the RFP phase. No notification or debrief will be provided to firms which have not been shortlisted.

If you encounter technical difficulties while uploading documents, please send an e-mail to the Help Desk at corporateprocurement@worldbank.org prior to the submission deadline.